Data on sales and expenses are as follows: Model A Model B Model C 1,000 units 2,000 units 1,000 units Sales $100,000 $400,000 $100,000 Less: Variable manufacturing and selling 50,000 350,000 75,000 expense Contribution margin 50,000 50,000 25,000 Less: Fixed expenses Depreciation of special equipment 10,000 10,000 10,000 Salaries of product-line managers 4,000 15,000 5,000 General factory overhead* 10,000 General administrative expense* 5,000 5,000 10,000 Total fixed expenses 29,000 35,000 35,000 Net operating income $21,000 $15,000 $(10,000) ^ All equipment has no resale value
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Because lets be real: organizing everyones schedules is harder than catching a Legendary Fish
ABU 20 80 Ambassadeur 2 20 70